Tax calendar for individual entrepreneurs: When to pay taxes in 2025

In 2025, military tax became mandatory not only for hired employees, but also for virtually all individual entrepreneurs, regardless of group. Rates have increased — and an error in calculation or untimely payment can result in fines.

Therefore, it is worth understanding: who pays military tax in 2025, at what rate, when and how to do it easily.

What is military tax?

Military tax (MT) is a mandatory payment introduced in 2014 by the Law of Ukraine «On Amendments to the Tax Code of Ukraine». The state levies this tax for the needs of the country’s defense — financing the Armed Forces of Ukraine, purchasing weapons and providing for the military.

Although MT is temporary, it is still in effect due to the martial law in Ukraine. From December 1, 2024, when Law of Ukraine No. 4015 came into force, for most types of income, the military tax rate increased from 1.5% to 5%.

Who pays military tax?

According to paragraph 162.1 of the Tax Code of Ukraine (hereinafter — TCU), military tax payers include:

• • resident individuals when receiving income from sources of their origin in Ukraine or from foreign sources;
  • non-resident individuals — if they receive income from sources in Ukraine;

• tax agents of individuals — for example, employers: pay MT from salaries, income under civil law contracts (CLC) and other income (similarly to PIT).

Do individual entrepreneurs pay military tax from income?

From January 1, 2025, individual entrepreneurs on the simplified taxation system also pay military tax:

• Individual entrepreneurs of groups 1, 2 and 4 pay a fixed amount of UAH 800 monthly (10% of the minimum wage);
• Individual entrepreneurs of group 3: pay 1% of the received income quarterly.

The military tax rate for individual entrepreneurs on the general taxation system is 5% of net taxable income.

Military tax benefits

Exempt from military tax are:

• combatants and military personnel during mobilization;
• individual entrepreneurs of groups 1 and 2, whose tax address is in the combat zone or occupied territories;
• individual entrepreneurs of groups 1 and 2 without hired employees during vacation (up to 1 month per year) or illness for more than 30 days;
• persons called up for military service during mobilization.

For military personnel and employees of law enforcement agencies, a preferential rate of 1.5% applies instead of the standard 5%.

What income is subject to military tax?

Military tax is accrued on the total monthly or annual income. In particular, individuals pay military tax from salaries, income under civil law contracts and other types of income. At the same time, certain incomes of citizens are not taxed.

In most cases, military tax is paid together with PIT: if PIT is paid, then MT is also paid. If income is not subject to PIT (or is taxed at a zero rate), there is also no military tax (subparagraph 1.7 of paragraph 161 of subsection 10 of the Transitional Provisions of the TCU).

Military tax rate in 2025

In 2025, the following military tax rates apply:

*Exempt from military tax on monetary allowance, if directly involved in defense measures during martial law (subparagraph 3 of paragraph 1.7 of paragraph 161 of subsection 10 of the Transitional Provisions of the TCU).

The increased rate of 5% will be in effect until the end of martial law, after which the rate of 1.5% will be applied again.

Military tax payment deadlines

The deadlines for paying military tax depend on the category of payer:

• Individual entrepreneurs of groups 1, 2 and 4: monthly until the 20th of the current month.
  💡 Can be paid in advance for the entire year.
• Individual entrepreneurs of group 3: within 10 calendar days after filing the quarterly declaration.
• Employers: transfer simultaneously with PIT until the 20th of the month following the reporting month.
• Individuals with declared income: until July 1 of the year following the reporting year.

Responsibility for untimely payment of military tax

The norms of the TCU define the responsibility of individual entrepreneurs for untimely or full non-payment of military tax in 2025. The main sanctions are a fine and the accrual of penalties.

• For individual entrepreneurs of groups 1 and 2: a fine of 50% of the MT rate.
• For individual entrepreneurs of group 3: for non-payment less than 30 days — 5% of the amount of unpaid military tax, more than 30 days — 10%.

In case of deliberate evasion of military tax payment, the following is provided:

• for the first violation — a fine of 25% of the amount of unpaid military tax;
• in case of repeated payment delays of more than 90 calendar days, the fine increases to 50% of the amount of debt.

If an entrepreneur has overdue military tax payment, they will have to pay a penalty. The accrual begins from the 91st day of overdue payment (i.e., from the first day after the deadline for payment) and is added for each day. The calculation of the penalty is carried out in accordance with Article 129 of the TCU.

How to calculate military tax?

For different categories of military tax payers, the tax percentage will differ. Let’s consider typical examples.

To which details should military tax be paid?

For paying military tax in 2025, special budget revenue classification codes are used:

• 11011700 — for individual entrepreneurs on the simplified taxation system
• 11011800 — for legal entities on the simplified system
• 11011000 — for payment for hired employees

Current details for paying military tax in 2025 for each region can be found in the «Vchasno.Zvit» service directory. An individual entrepreneur just needs to specify their registration address — and the service will indicate the current details for paying taxes.

Accounting for military tax

Like PIT, military tax is reflected in account 64 of accounting “Settlements for taxes and payments”. Different sub-accounts are used for different objects of taxation:

• accrual: Dt 92 «Administrative expenses» Kt 642 «Settlements for taxes»;
• withholding from salary: Dt 661 «Settlements for wages» Kt 642 «Settlements for taxes»;
• transfer to the budget: Dt 642 «Settlements for taxes» Kt 311 «Current accounts in banks».

Reporting

Military tax is reflected in the same reporting forms as PIT:

• employers submit information on withheld MT in the income report form No. 1DF quarterly until the 20th of the month following the reporting quarter.
• individual entrepreneurs on the simplified system of groups 1, 2 and 4 — in the annual tax declaration.
• individual entrepreneurs of group 3 — in the quarterly declaration of a single tax payer.

How «Vchasno.Zvit» automates military tax payment

«Vchasno.Zvit» automatically calculates military tax and other taxes for individual entrepreneurs of any group and taxation system. You enter your income data into the service and receive the exact amount of military tax, PIT and social security contributions that needs to be paid. Without stress, errors and missed deadlines.

The service also automatically generates the necessary reports — in the correct format according to current legislative requirements. All that remains is to check the data and sign the report using an electronic signature.

«Vchasno.Zvit» integrates with electronic services of banks and tax authorities. Therefore, you are guaranteed to pay taxes to the correct details and submit reports on time!

Conclusion

Military tax is one of the key taxes paid by individuals in Ukraine. Both employees and employers must know the current rules for its accrual to plan their own budget and correctly form tax reporting.

To avoid errors in calculations and payments, you can automate the process in the Vchasno.Zvit service. It will help you correctly generate a report and pay taxes on time.